All posts tagged india

Market speculation is firming that Linc Energy will succeed in its third attempt to offload noncore coal assets in Queensland state after bankers said potential buyer India’s Adani Enterprises on Wednesday raised US$850 million via a share issue.

The news sent Linc’s shares up 18% to close at A$1.535.

But Adani has yet to say why it raised the money and given the collapse of two previous attempts by Linc to sell coal assets to separate Chinese buyers, investors may be getting ahead of themselves.

Indian oil marketing companies, and exploration and production oil firms were sharply higher in heavy volume as funds bought after the government deregulated prices of gasoline Friday, saying it will gradually free diesel prices.

BSE Oil & Gas Index was up 1.9% versus the benchmark Sensex at just 0.7%.

“Funds are building positions as the sector has been pressured for months now and stocks have been under-owned,” says an analyst at a foreign brokerage.

OMCs have hitherto had to sell cooking, auto fuels at state-set prices to help control inflation, leading to revenue losses. Indian Oil Chairman B.M. Bansal said he expects the recent price rise to narrow the revenue loss on the sale of oil products to 850 million rupees a day versus 1.2 billion rupees a day previously.

Reliance Industries shares rose 1.7% in India on the news that the firm will buy a 95% stake in unlisted Infotel Broadband Services for 46 billion rupees, or $1 billion. The move could be good news all around, with analyst Saeed Jaffrey of Ambit Capital saying penetration of broadband services in the country has been at “abysmally low levels” partly due to the high cost of computers.

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A rout in raw materials has helped drive down holdings in a Carlye Group firm’s flagship fund from about $2 billion to less than $50 million. The collapsing commodities market is spreading pain well beyond specialists to some of the heaviest hitters on Wall Street.